3D Computer Store

8/8/2019 3D Computer Store

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General Information

Socio-Economic Profile Brief History

The project will be situated at Taglatawan, Bayugan City.Agusan del Sur,Bayugan City was formerly a sitio of BarangayMaygatasan, Esperanza. First,the place was located along theriver which served as the pathway of the natives ingoing toEsperanza.

A year later, barangay official led by the late Sergio Mullanedawork out the creation of Bayugan into a regular municipalitythrough the assistance of Democrito O. Plaza, Governor of Agusan. By virtue of Order No. 440 of the late President CarlosP. Garcia, the petition to create the municipality of Bayuganwas granted on August 6, 1961 .


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G eographical LocationBayugan is one of the newest cities and the onlycity in the province of Agusan del Sur. Agusan delSur is within the Region XII in the island of Mindanao. Bayugan City has the land area(as of

2007) of 68,877 hectares.

T opography and Climate Bayugan City has Type II climate with no pronouncedwet and dry season. It has been observed thatduring the months of November to February,occurrence of heavy rains is usually experienced.


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Land Area Bayugan City has a land area of 68,877 hectares as of 2007survey .

T ransportation SystemThe concreate highway and available barangay roads facilitatestransportation in the city. Bayugan can be reached via landtransport. Bachelor Express Inc., Land Car Inc., are the few buscompanies travelling to the city. Major transportation aremotorella and some multicabs which travel to remote area.

T he PopulationReports of National Census and Statistics office revealed that thepopulation of Bayugan City in 2007 was 95,032 in 17,222

households.


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General Description

N ame of the Project The proposed name of the project is 3D Computer

Store and Repair Shoppe .

Location of the Project The business will be located along Narra Avenue,Poblacion, Taglatawan Bayugan City, and AgusanDel Sur. The project will buy the vacant space alongthe highway with the area of 30 m 2 atPhp150,000.00.


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D escription of the Project 3D Computer Store and Repair Shop is a store and atthe same time offers computer services to the clients.Affordable and latest brands of computers and

computer accessories are the products will be offeredto the public. Since the business needs lots of investment, the type of business will be partnershiptype. The project is partnered with Mr. Jonas R.

Suralta, Rovelyn B. Jandayan and Normalin D. Ganso.


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M ethods of FinancingThe project will start with the capital of

Php9, 224,091.Table 1. Methods of Financing

Name Amount Contributed Type of Partner

Rovelyn B. Jandayan Php3,074,697 Capitalist Partner

Normalin D. Ganso Php3,074,697 Capitalist Partner

Jonas M. Suaralta Php3,074,697 Capitalist Partner


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Technical Aspect

The present Bayugan Electric Cooperative toprovide the electricity and Bayugan City Water

District for the water supply to operate thebusiness, and the Mayor s permit for the plantsite survey. The business name will beregistered at the Department of Trade andIndustry (DTI). All of these, the business ispossible in every aspect that the business need.


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M anagement of the Project The 3D Computer Store and Repair Shoppe will be manage bythe proponents of the business. They have an ability to manage astore type business and a skills regarding a computes. With abackground of Computer Hardware Servicing, a ComputerProgramming graduate and Accountancy graduates. The business iswilling to face an problem and be in the city of Bayugan being thefirst computer store and repair shop in the locality.The following persons are the one that will handle as the majoroperators in the project.

Name Obligation

Jonas M. Suralta The manager. In charge for the quarter of the financialmatter.

Rovelyn B. Jandayan In charged for the renovation of the rented space and for thesecuring the permits and registration of the business.

Normalin D. Ganso In charged for the deal of computer parts and computer

distribution and legal caused of the business.


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O rganizational Chart Rovelyn B. Jandayan Normalin D. Ganso Jonas M. Suralta

PC Technician Specialist

Selling Clerk Cashier Technician


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R ecruitment ProgramThe 3D Computer shop and Repair shop will recruit applicantswith the required qualification which is shown below.

Table 3. Position Offered and It s Qualification

Position Sex Status Age Qualification

SellingClerk

Male/Female Single 18-23yrs. old

At least high school with pleasingpersonality and good communication skill.

Cashier Female Single 18-22yrs. old

At least 2 years college level or graduatewith pleasing personality

Technician

Male Single 18-22yrs. old

Must be computer technician. TESDA passeris highly appropriate.


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T raining ProgramThe 3D Computer store and Repair shop will conducted one

week training program to trained and develop highly level of skills of employee and to enhance their skills in their present job.Table 4. Time Table

Activities August September October November December

Securing Permits __ __

Building Renovation __ __

Pre- operatingmaterials and product

evaluation

__ __

Recruitment Program __

Training Program __

Start Operation __ __


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Fridge Benefits According to Omnibus Rules Implementing theLabor Code, proponent must give benefits to their employees. Here are some of the benefits of 3D

Computer store and Repairs shop will provide totheir employees SSS Contribution, which everymonth the employee must deliver 10 percent ontheir salaries and Phil health and holiday bonus on

every holiday in Philippine calendar.


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Facilities 3D computer store and repair Shoppe will be rentinga space along the highway of Poblacion Taglatawan,Bayugan city, specifically at Narra Avenue. The spacemeasures 30 meter squared. The proponent will rentthe said space with an amount of 30,000.00 the downpayment advance worth 60,000.00. The space don tstill have a glass door and windows and so theproponent will install some additional layer to makethe be attractive to the customers.


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M arketing Aspect

3D Computer Store and Repair Shop will be constructed atNarra Avenue, Taglatawan, Bayugan City. The plant site isalong the main highway of the municipality. The targetcustomers are families, office workers, students and nearby

neighborhood in demand of personal computers and ownersof personal computer having trouble with their system unit.And as we know, Bayugan City is one of the productive city, bysome of the business establishment and home owners of personal computer unit. The business suits the locality

because it would be the first computer store and repair shopin the municipality. People who want to buy personalcomputers and laptop will not anymore travel to the next city

Butuan City in order to purchase one.


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D emand Analysis Demand for computer unit for the last three years in ButuanCity, according to the statistic number of buyer in OctagonComputer Superstore and Columbia Computer Center, ButuanCity.

Year Quantity Demand

2000 430,000.00

2008 550,000.00

2009 680,000.00


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Supply Analysis Looking for the supplies of good is not easy. However,with the help of the partners of the proponent, thesupplies and equipment were ease to find. For thebrand new computer unit, ASUSTEK CORPORATIONPHILIPPINES and MSI Computer Corporation in ASIAbecame the wholesale supplier of the computer unitfor the business and JYM Computer Center for wholesale supplier of computer parts and accessories


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Competitive PositionSince there are no other businesses same with3D Computer store and Repair shop in BayuganCity, the prevailing prices of the product isimplemented in, but if the project is to buy acomputer set in the selected supplier at cost18,000 the business will sell it at the market witha cost 20,000-28,000 Php increasing at about 10percent of the initial price. Because we all knowthat the business wants to gain profitableincome and to reach the goal and objectives of the project.


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M arket program3D Computer Store and Repair shop has two mainstrategies. The first strategy focuses on attractingnovice computer users including office workers andfamily wanting to have computer unit in their home, andby providing them a novice friendly computer unit.Moreover, the project will offer/provide a fair price andquantity products with friendly employees.Secondly, the strategy focuses in the computer shoptechnician. They have knowledge in computer repair andhardware upgrading which novice computer users findattractive and exciting.And in order to make the business known by thecustomers. It will introduced by using flyers,enumerating its service given and their prices and

location of the project.


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M arket Share 3D Computer store and Repair shop will grab 100% marketshares. The shop will built in Bayugan City and with no othercompetitors. Different marketing strategies and promotions willbe considered.

M arket Prices Price is the amount of money charged for a product.3D Computerstore and Repair shop s product pricing is very affordable. With alow additional percentage price to product, the business willsurely click to the market. Leaflets will be distributed and hand-out to various business establishments and houses. Promos andservices offered will be displayed on the store window. The ownerwill offer promos to attract customers like 40% off on the selectedproducts on the opening of the business.


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Social Aspect

Contribution to the Economy The project should be constructed because the

proponents want to help people s demand. Theproject will provide additional employment to thepeople of city with 5 months contract and renewal byrecommendation of the Manager and Head of

Technician.


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inancial Aspect

A. Land & Building Construction30 sq.m (500.00/10 sq.m) 150,000Building Construction 1000000 1150000

B. Utility RequirementsWater 18000

Electricity 42000 60000C. Machineries & Equipment

3 Soldering Iron 7503 Convertible screw driver 5402 Anti-Static Rest Band 900

Rubber Mat 80DigiTal tester 650Crimping Tool 1802 Side Cutter 240Computer Set For the Teller 18000Computer Set For the Technician 36000 57000


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D. Furniture & Fixtures4 Divider 152002 table for repairing area 3000Table for teller area 1800

3 Office chair 26705 Mono block chair 42506 Padlock 9002 Cabinet for new supply 37001 Cannon IPI 900 Printer 2,8002 Air conditioner 3000Fire Extinguisher (10 lbs.) 4200 51,520

E. Cleaning Materials2 Brooms (45) 902 Dustpan (75) 1502 Feather dust (50) 100

1 Mop 3806 Powder soap (12) 8643 Air freshener (80) 2,8802 Trash can (135) 270 4,734


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G. Legal RequirementsBarangay Clearance 120

Mayor s Permit 5000Business Tax 1,500Sanitary Permit 350Occupational Tax 650Inspection Fee 750Filling 150Processing 180Zoning 550Electrical Inspection 380Fire Inspection 450BIR 550

DTI 7570Business plate 180 18380


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H. Supplies60 Laptop 1,656,480

60 Desktop 1,566,66060 Monitor 513,420120 Accessories 121,80060 AVR 24,48060 Speaker 159,720120 Video Card 147,78060 Motherboard 241,32060 Processor 184,80060 Optical Drive 939,240120 Webcam 42,900120 Headset 69,360

60 Table 31,68060 Printer 258,900


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120 Mouse 1,015,560.0060 Memory (Laptop) 42,000.00120 Memory (Memory stick) 81,000.00

60 Memory (Printer) 83,580.0060 Memory (Desktop) 287,640.0060 Keyboard 135,000.00 7,603,260

Total Project Cost 9,224,091

DEPRECIATION

Furniture & Fixtures = _ _ Cost_____Estimated Life

= 51,5205 years

= 10,504


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Table 1. Projected Sales (2005-2010)

Products Year 1 Year 2 Year 3 Year 4 Year 5 TotalComputersets/Parts/Accessories

9123906 9123906 9123906 9123906 9123906 9123906

ComputerRepairs

84,000 84,000 84,000 84,000 84,000 84,000

TroubleShooting

120,000 120,000 120,000 120,000 120,000 120,000

CostInstallations

1440000 1440000 1440000 1440000 1440000 1440000

Total 10767906 1076796 1076796 1076796 1076796 1076796


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Financial Aspect Gross Cost Year 1 Year 2 Year 3 Year 4 Year 5 Total

Supplies 7,603,260 7,603,260 7,603,260 7,603,260 7,603,260 38,016,300

Land & Building 1,150,000 __ __ __ __ 1,150,000

Salary 514,800 514,800 514,800 514,800 514,800 2,574,000

Utility

Requirements

60,000 60,000 60,000 60,000 60,000 300,000

Machineries &Equipment

57,590 __ __ __ __ 57,590

Furniture Fixture 51,520 __ __ __ __ 51,520

CleaningMaterials

4,734 4,734 4,734 4,734 4,734 23,670

Materials 1,007 1,007 1,007 1,007 1,007 5,035

LegalRequirements

18,380 18,380 18,380 18,380 18,380 91,900

Miscellaneous 10,000 10,000 10,000 10,000 10,000 50,000

Total Cost 9,224,091 9,964,981 9,964,981 9,964,981 9,964,981 58308106


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Financial Statement Cash Inflow Year 1 Year 2 Year 3 Year 4 Year 5 Total

R. Capital 9,224,091 10,767,906

10,767,906 10,767,906 10,767,906 5063,839,530

Sales 10767906 10,767,906

10,767,906 10,767,906 10,767,906 63,063,621

Total 19991997

CashOutflowsSalary 514,800 514,800 514,800 514,800 514,800 2,574,000

Utility 60,000 60,000 60,000 60,000 60,000 300,000

Machineries 57,590 - - - - 57,590Furniture 51,520 - - - - 51,520

Land& B. 1,150,000 - - - - 1,150,000

Cleaning 4,734 4,734 4,734 4,734 4,734 23,670


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Supplies 7,603,260 7,603,260 7,603,260 7,603,260 7,603,260 3,8016,300

Miscellaneous 10,000 10,000 10,000 10,000 10,000 50,000

Total 9,471,291 8,212,181 8,212,181 8,212,181 8,212,181 42,320,015

Net CashInflow

10,520,706

2582779 2582779 2582779 2582779 20851822

Cash Balancebegin year

_ 13,350,685 15,933,464 18,516,243 21,099,022 2,0851,822

Cash balanceend year

10,767,906

13,350,685 15,933,464 1,8516,243 21,099,022 41,950,844

Less:Depreciation 10,504 10,504 10,504 10,504 10,504 52,520

FinancialAspects

Net Income (-1,533,31) 2,572,275 2,572,275 2,572,275 2,572,275 8,755,789Net Profit R.

Expenses 12,301,217

8,195,631 8,195,631 8,195,631 8,195,631 45,083,741

ExpensesRatio

118%.8 70.82% 69.56% 68.45% 67.47% 328.3%


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Economic Aspect Item Year 1 Year 2 Year 3 Year 4 Year 5 Total

GrossBenefit

10,767,906 10,767,906 10,767,906 10,767,906 10,767,906 53,839,530,

Gross Cost 1,239,217 8,195,631 8,195,631 8,195,631 8,195,631 45,083,741

Net Benefit (1,533,311) 2,572,275 2,572,275 2,572,275 2,572,275 8,755,759


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A. Net Benefit Per Peso Investment

NBPI = GB-(BC-CI)CI= 53,839,530-(45083,701-9,224,091)

9,224,091= 17,979,920

9,224,091

NBPI= 2 or 20%

Average Annual per peso Investment= 0.4 or 40%.

Within five (5) years, for every peso investment, the netbenefit earned is 2 or 20%. On a yearly basis, the equivalentaverage net benefit earned per peso investment is 0.4 or 40%


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B. Net Present Value

Year GrossBenefit

DF Presentworth

Grosscost

DF(12%)

PresentWorth

1 1076796 0.893 9615740 12301217 0.893 10984987

2 1076796 0.797 8582021 8195631 0.797 6531918

3 1076796 0.712 7666749 8195631 0.712 5835289

4 1076796 0.636 6848388 8195631 0.636 5212421

5 1076796 0.507 5459328 8195631 0.507 41551185

Total 5383950 3.545 38172226 45083741 3.545 32719800


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Year Net Benefit Discount Factor(12%)

Net PresentWorth

1 (- 1533311) 0.893 (- 1369247)

2 2572275 0.797 2050103

3 2572275 0.712 1831460

4 2572275 0.636 1635967

5 2572275 0.507 1304143

Total 6440789 3.545 5452426

The Net Present Value of the income Stream of the project afterfive (5) years is equivalent to 5,452,426.00


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C. Benefit Cost Ratio(B/C Ratio)

BCR= Present Worth of Gross BenefitPresent Worth of Gross Cost

= 38,172,226

32,719,800= 1.16

The project is accepted > 1;that is B:C (1.16:1.00)


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Internal Rate of Return (IRR)

Year NB DF

(150%)

PW

(150%)

DF

(152%)

PW

(152%)

DF

(155%)

PW

(155%)1 (-1533311) 0.4 -613324 0.397 -608,724 0.390 -597,991

2 2572275 0.16 41564 0.157 403,847 0.154 396,130

3 2572275 0.064 164626 0.062 159,481 0.060 154,337

4 2572275 0.026 66879 0.025 64,307 0.020 51,4465 2572275 0.010 257228 0.0098 25,208 0.009 23,150

Total 8755789 0.66 286976 0.65 44,119 0.63 4119

Computer IRR = 155

The computed IRR of 155 % indicates the maximum interest thatthe project can pay for the resources used if the project is torecover its investment and operating expenses at break- evenpoint.


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Computation by Interpolation

D.F P.W152 44119

4x 441193 X 0 44119

155 27,072

3:44119 : : x: 44119x 44119 = 3(44119)

44119x = 132,357

44119x = 3

IRR = 152+x= 152+3= 155


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Payback Period Item Year 1 Year 2 Year 3 Year 4 Year 5

Initial CapitalInvestment

9224091 __ __ __ __

Gross Benefit 10767906 10767906 10767906 10767906 10767906

Net Gains in

Operation

(- 1533311) 2572275 2572275 2572275 2572275

CumulativeGains in

Operation

(- 1533311) 1038964 3611239 6183514 8755789

Unpaid

Balance of Investment

9224091 6651816 4079541 1507266 21462714

Payback Period is between 4 & 5 years.4 years= 1507266

2572275

= 0.59


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N et Benefit R atioYear Capital

CostDF (2%) Present

Worth of Capital

NetBenefit

DF (12%) PresentWorth NetBenefit(12%)

1 9224091 0.893 8237113 (-1533311) 0.893 1369247

2 __ 0.797 __ 2572275 0.797 2050103

3 __ 0.712 __ 2572275 0.712 1831460

4 __ 0.636 __ 2572275 0.636 1635967

5 __ 0.507 __ 2572275 0.507 1304143

Total 9224091 3.545 8237113 8755789 3.545 5452426


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N/K Ratio at 12 % = Present Worth of Net Benefit at 12%Present Worth of Investment at 12 % %

N/K Ratio = Present Worth of Positive Incremental Net Benefit at 12 %Present Worth of Negative Incremental Net Benefit at 12 %

N/K = 68216731369247

N/K = 4.98 Feasible;

Accept the project when the N/K Ratio is greater than one (1).

Documents

3D Computer Store